Electrolux (ELUXF) Q3 2016 Earnings Call

Jonas Samuelson – CEO

Brexit Impact on consumer markets

“The overall market environment in Europe was stable despite negative impacts from the Brexit vote.”

Continued price pressures in Europe

“Prices continued to be under pressure in Europe but to a lesser extent than previously, due mainly to our price actions in the UK. All in all, we more than offset the price erosion through better mix in volumes.”

Expect price increases in the UK

“With continued fluctuations in the currency markets and with the strengthening of the Brazilian real, we start to see less impact from currencies in the last quarter of 2016. The depreciation of the British pound has had a negative impact, although the intention is to mitigate that through price increases. At current rates, we expect a positive transactional effect of SEK 120 million for the fourth quarter and a negative of 1.1 billion for the full year.”

Uncertain demand in the UK

“Following Brexit vote, the outlook for demand in the UK still remains uncertain.”